The globe’s sputtering supply-chain logistics are challenging for all businesses right now. But for cannabis, those challenges can be an absolute nightmare.

When hemp cultivation became legal in all 50 states in 2018, under a Farm Bill that guaranteed that hemp products could cross state lines but gave no guidelines for moving them, Kevin Schultz knew there was a serious business need.

The founder of Illinois-based The 357 Co.’s experience with the Illinois marijuana industry help him see the need for specialty logistics support for these operators.

Hemp, he said, can be trickier to move than marijuana. That’s for two reasons:

• The hemp supply chain frequently crosses state lines.
• Hemp products don’t require track-and-trace technology the way marijuana products usually do.

Hemp Industry Daily caught up with Schultz to find out more about how the global logistics mess is playing out in hemp. His answers have been edited for length and clarity.

How are hemp logistics different than logistics for other regulated products, such as alcohol or tobacco?

With alcohol and tobacco, you have some standardization and you have some guidance. You then have to play within that framework to make sure you’re doing things legally.

Where I saw the glaring hole for the hemp supply chain was after the Farm Bill in 2018 came out. You now have the golden ticket that the cannabis industry wants to bring things over state lines. But they gave you no idea on how to do it.

And I said to myself, without proper tracking and tracing and seed-to-sale and all the stuff I was used to when I was in cannabis, the supply chain is going to need a friend in that logistics component to be able to navigate through this and keep us all out of trouble. …

It’s not like tobacco or alcohol. There’s really no way that we’re being told exactly how to do it. And there’s no standardization across all the states.

How would standardization help?

It’s not like we’re taking this new product that we know for sure is always under 0.3% (THC). There’s always that worry that someone’s going to misinterpret what it is. And I don’t think you have that with tobacco and alcohol.

With alcohol, they’re able to take unprocessed alcohol over state lines to a processor. And I believe that’s one of the biggest bottlenecks in our industry right now. It’s a gray area.

I don’t see anything that says where you can take product that is testing over 0.3% THC from your processor in Kentucky to my processor in Tennessee. I don’t see how that’s not committing a crime.

I believe that’s going to have to come from the USDA. … I don’t know how the supply chain can truly ever scale to the level we all want it to until that opens up.

What’s your advice for going through different states?

We pretend as if we’re in court already. We try to make sure we have everything that driver needs to show law enforcement. We call law enforcement in advance to really get ahead, to say, “We’re coming through your state.”

And our operations team has relationships with many of the departments of ag in states we come through most often.

We always say to plan for when we get pulled over, not if we get pulled over. …

One example, we learned this lesson in the state of Florida. We reached out to the Florida Department of Ag and we asked, “What do you want us to do with it? Tell us exactly what you want us to do.”

And they had some rules with bringing in dirt or soil into Florida. It’s a big no-no. And there is a checkpoint when you go in. They want you to stop and check in.

Something that simple, but most folks I believe are blowing right past it. And they’re just hoping they’re not going to get caught.

Question about fiber logistics. Are you seeing more hemp decorticators and processing sites popping up? The scarcity of decortication facilities has historically been a big gap in the hemp supply chain.

I wish I had good news on decorticators. I still think there’s a ways to go there.

I think you’re starting to see more start to come online, just not as many as we need to cover what’s eventually going to be just an explosive side of this industry.

We keep hearing about this enormous truck-driver shortage. How is that affecting your business?

It’s been challenging for us to build a network simply because some folks won’t ship hemp. Some drivers will not take it, so we spend a lot of time educating our drivers on the rules and regulations on why it’s okay to ship it.

Ultimately, the driver does not have to. Sometimes they get cold feet and say they don’t want to play in that area. They’d rather ship other freight that we have.

If you look at logistics and transportation as a whole, driver shortages mean your capacity shrinks.

I think of some drivers that typically would go on the road are now delivering for last-mile companies, doing the front-of-the-doorstep type shipments. They’re not going to long trips cross country as much anymore.

And there’s a significant amount of drivers that are retiring.

What’s your forecast for how automation will affect cannabis logistics? Will robots and drones be making hemp deliveries?

I think where you’re going to see this from the early adopters is going to be inside the pick, pack and ship locations. Putting orders together inside a factory inside distribution centers.

The last-mile stuff, that’s a different story. When it comes to a product like cannabis and hemp, that’s not going to be here as soon as people think.

They’re underestimating the importance and the role that those drivers play, whether it’s a 21-and-older age verification or the handling of the product from the truck to the doorstep. Our drivers really play a really big role.

I do feel like the world’s going in that direction. But I think you’re gonna see that inside the distribution centers before you actually see (robot delivery) out on the streets.

Kristen Nichols can be reached at kristen.nichols@hempindustrydaily.com

As research broke over the past two weeks that cannabis products including CBD, cannabinoid acids and even synthetic cannabis compounds may prevent or treat COVID-19 infections, excitement among hemp entrepreneurs spread.

Interest in the seemingly stagnant hemp biomass, CBD and CBG markets soared to highs not seen in three years. Prices are on the rise again and hemp producers are fielding calls from a slew of interested parties hoping to cash in on the news.

Considering the ups and downs the hemp industry has struggled through since it became a legal commodity in December 2018, it’s easy to understand the enthusiasm.

It’s good to see positive COVID-19 headlines for once, especially when they are about cannabis.

But is it too early for hemp entrepreneurs to profit from research that hasn’t yet been tested in human clinical trials?

And what are the compliance and legal risks for cannabinoid product makers peddling products as COVID cures?

Researchers and industry leaders have urged caution among consumers and industry alike.

“Science is not the result of one or two studies. It’s a long process based on peer review and the opportunity for replication of results,” said Hemp Industries Association executive director Jody McGinness.

“As much as we are encouraged by studies that open up people’s eyes to the possibilities, we want to caution anybody against extrapolating from the results of early studies to any type of claims about the efficacy of cannabinoids.”

Industry ramping up anyway

For Bend, Oregon-based hemp producer Wesley Ray, Oregon State University’s study showing cannabinoid acids can prevent COVID-19 from entering human cells has validated his own work growing and processing CBDA and CBGA over the past few years.

Since news broke about the research, Ray and his partner Shannon Little have been inundated with calls and emails from retailers, formulators, distributors, recreational marijuana businesses, and even government entities, looking for raw material, crumble and tinctures to produce white label products and more.

“And then you have the bigger companies that are wanting to do some pretty crazy numbers (like) 25 kilos every two weeks,” Ray said.

He’s selling CBGa and CBDa crumbles in bulk for $2,900 per kilo or $5,000 per single kilo.

“The prices on that are obviously up. And if farmers are smart, they would hold back their biomass and not just liquidate it,” Ray said.

“I would put $20 a pound on my CBG biomass right now, just because I know how many pounds are going to go in to make a kilo and I know the input costs, and I don’t think the lab should be the only one making margins.”

Prices haven’t seemed to go up across the board yet in response to recent research results, but it’s still early and the interest is clear, according to Julie Lerner, the founder and CEO of Denver-based commodity selling platform PanXchange.

“There is no doubt that demand and inquiries are picking up for several processors in the country, but so far activity has been mostly directed toward CBDA and CBGA products,” Lerner told Hemp Industry Daily in an email.

“Demand has not yet picked up in biomass; our January prices are on par with December. However, a late-month rally pushed winterized crude prices up $5/kg this month.”

Compliance matters

The research findings supporting the role of cannabis in human health “moves the scientific conversation forward” and show the industry is one step closer to “unlocking the many benefits of cannabis,” said Asa Waldstein, principal of Boulder, Colorado-based Supplement Advisory Group, which advises herbal products and cannabis entrepreneurs on federal compliance.

That said, “it is a prohibited act to promote non-drug products as a cure for any disease or virus,” Waldstein cautioned in an email to Hemp Industry Daily.

“I urge companies to fight the urge to exploit this news to sell products.”

As has been the case with all other claims that have prompted the U.S. Food and Drug Administration and the U.S. Federal Trade Commission to sanction cannabis product manufacturers, anything on a commercial website or social media is considered marketing, he pointed out.

“Although unadvisable, if a company must risk posting about (cannabinoid and COVID research), they should ensure there is no mention of their product or company in the post or blog,” Waldstein said.

“This includes removing any shopping cart-linked call to actions and product pictures.”

Waldstein added that FDA and FTC authorities consider the “reasonable consumer takeaway,” which means if consumers think a company’s blog or post is about its products, the authorities do, too.

“I asked a top FTC official about ‘educational’ blogs on commercial websites. He responded, ‘What is the purpose of posting an educational blog on a commercial website, if not to sell products?’” Waldstein said.

“This further demonstrates the authority’s position when posting about disease therapies on a supplement site.”

And with the number of “cringe-worthy product claims” aiming to cash in on scientists’ research, companies promoting COVID research with links to products should consider FDA and FTC enforcement “a given,” Waldstein said.

Waldstein pointed to 25 COVID-related warning letters that the FTC sent earlier this month, showing the regulator’s “renewed dedication” to stopping companies from making misleading claims.

“The FDA/FTC makes examples of companies not following the rules, especially in areas they want to highlight,” he explained in an email.

“I predict we should see a batch of CBDA and COVID warning letters coming out in the next couple of months.”

Universities could push back, too

It’s not just government compliance companies need to consider.

Cannabis entrepreneurs that are openly promoting products in the name of university research may also be violating intellectual property laws provided to researchers, said Jay Noller, director of the Global Hemp Innovation Center at Oregon State University.

“There’s this presumption that because it was published, it’s theirs to use,” Noller told Hemp Industry Daily.

“International and U.S. patent law is such that to not check in with the publisher or that institution, we’ve seen that in other industries where the presumption leads to downstream reaches for violation of that IP.”

Even in cases of publicly financed research, scientists and universities have IP rights on findings that can produce results such as inventions, scholarly publications, new plant varieties, confidential information and more – even if they are proof-of-concept or laboratory-scale prototypes that require additional research and development before they can be commercialized.

Hemp entrepreneurs therefore need to do due diligence that they aren’t violating prior IP, Noller said.

Perhaps because the makers of the only CBD drug sanctioned by the FDA, Epidiolex, aren’t in headlines suing over-the-counter CBD makers, some cannabis operators may assume they are safe to market their own CBD products.

But that’s a risky assumption, Noller said, pointing out that such cases can take years to build, as in the seven-year patent battle over smart phones between Apple and Samsung.

Further, cannabis companies should consider that investment in research could yield faster industry development than investments in marketing, Noller said.

“We saw that for three years: branding, marketing. And then you have one science paper come out on a very, very limited budget. …That’s how it’s going to work.”

“So I think we’ve we’ve been able to demonstrate, if not shame, the industry into its disproportionate attention to fantasy versus reality, and that’s truth in science.”

Laura Drotleff can be reached at laura.drotleff@hempindustrydaily.com

Thailand’s Health Ministry recent removal of marijuana from the country’s list of controlled drugs is opening business opportunities only for low-THC hemp operators for now, because the country has retained a cap on allowable THC.

The nation of almost 70 million plans to limit products above 0.3% THC to highly regulated medical sales channels, experts say.

One North American business that isn’t waiting to capitalize on opportunities in Thailand is Las Vegas-based Audacious Brands.

Earlier this month, Audacious entered the Thai market via a strategic partnership with Golden Triangle Health.

Marc Lakmaaker, senior vice president at Audacious, said the companies plan to sell isolate and white label products, as well as developing its own brands, leveraging GTH’s broad distribution networks.

GTH is setting up a retail franchise under the name Hemp House, and plans significant expansion this year.

“Longer term, we intend to get into the medical THC business by establishing cultivation in Thailand,” he said.

“For now, the products will be sold to the government, but it is anticipated that in the coming two years or so, recreational use will be permitted also. We will then convert the Hemp House stores into dispensary style outlets, as well as use our network in the country to secure broad distribution.”

By removing cannabis from the country’s list of controlled drugs, Thailand is also allowing home cultivation for noncommercial use.

When it comes to commercial cannabis, the changes benefit mostly health and beauty cannabis companies, said Chaiwat Sowcharoensuk, an analyst at Bangkok-based Krungsri Research.

“Producers of soaps, beauty products and cosmetics … will likely be the ones to benefit the most,” Sowcharoensuk told Hemp Today.

Editor’s note: This week, Hemp Industry Daily will be highlighting stories and analysis on the delta-8 THC phenomenon. Today, a look at the origins of the delta-8 THC trend. Read more in the special D-8 February issue of MJBiz Magazine.

When Harold Jarboe told his partners at Columbia River Cannabis in 2014 that he was leaving the licensed Washington state marijuana company to grow hemp in Tennessee, they thought he was crazy.

“They thought I’d lost my mind,” Jarboe recalled. And for a while, it seemed as if they were right.

Jarboe launched Tennessee Homegrown in 2016 and toiled to build it into a well-respected manufacturer of hemp-derived CBD products. He invested in premium genetics, operated leanly and, most importantly, tested his products at a third-party lab before sending them to retailers. The company was profitable but struggling to survive.

Then, in early 2020, retailers started asking for delta-8 THC.

Jarboe knew D-8 occurred naturally in cannabis in miniscule amounts. But the plant did not produce enough D-8 for an economically feasible harvest, so the requests caught him by surprise.

“No one in the industry saw this coming 2½ years ago,” Jarboe told MJBizMagazine. “Labs didn’t see it. Processors didn’t see it. Store owners didn’t see it.”

With his interest piqued by the requests, Jarboe researched and found that Israeli cannabis scientist Raphael Mechoulam had written in 2005 about converting CBD isolate and distillate into delta-8 THC. At the time, both hemp derivatives were extremely expensive, making the conversion to D-8 commercially unfeasible.

Loophole-turned-dam break

That changed dramatically with the passage of the 2018 U.S. Farm Bill, which pulled the rug from underneath CBD prices.

When Congress passed the Farm Bill, hemp cultivators and processors were sitting on loads of CBD oil that, until then, was hard to move in a marketplace limited by lack of federal clarity on CBD. The new regulations undammed that supply, with CBD distillate unleashed along with a new wave of entrepreneurs looking to enter the industry.

Jarboe said CBD prices dropped from $25,000 per kilogram to as little as $500 after the Farm Bill’s passage. Suddenly, converting CBD into delta-8 THC was economically feasible.

“One of the reasons this didn’t happen earlier is because anytime you have to do a conversion, it’s an added expense. When CBD prices went through the floor, this raw material became really cheap,” Jarboe explained. “Previously, the barrier to doing this had been cost. And now that cost barrier was gone.”

In its effort to legalize and regulate hemp-derived CBD, the 2018 Farm Bill stated that any cannabinoid derived from hemp—defined as cannabis containing less than 0.3% delta-9 THC—was a legal product.

Yet by specifying delta-9, the bill’s authors unwittingly left other cannabinoids outside the realm of regulation.

Unintended consequences

“Unfortunately, nobody that was dealing with this legislation knew what delta-8 was. We were all familiar with delta-9, and the Farm Bill was written so that hemp was defined as less than 0.3% delta-9 THC,” said Jonathan Miller, an attorney with the U.S. Hemp Roundtable who helped draft the bill. “Folks were innovative and … have been able to take advantage of a loophole because the legislation doesn’t ban delta-8; it only bans delta-9 over a certain amount.”

The news was music to the ears of hemp executives such as Jarboe, who suddenly “had huge stockpiles” of CBD with diminishing value.

Jarboe soon developed his own process for converting CBD into delta-8, did several trial runs to dial in his formulations and hired a third-party lab to test the products.

“We had store owners asking us for the product. It’s that simple. If you’ve got stores calling you saying, ‘Look, if you put this product under your label, we can sell it because people trust your brand.’ Well, that’s how we got into it,” Jarboe explained.

Now, Tennessee Homegrown is thriving, and Jarboe gives much of the credit to his D-8 pivot.

“Maybe it’s no longer the season for hemp as we knew it,” Jarboe wrote in a September 2021 blog post. “The world had changed, and we had to adapt or die.”

Other side of the coin

While D-8’s popularity is boosting the bottom lines of hemp farmers and CBD companies, it’s causing worries among traditional marijuana cultivators, manufacturers and retailers—as well as regulators and lawmakers.

“Any cannabinoid that can cause impairment should be regulated like delta-9 until we know more about it,” said Morgan Fox, a former spokesman for the National Cannabis Industry Association, who took a job with NORML after this interview.

“In the meantime, I think states as well as the federal government really need to start thinking about ways in which to bring novel and minor cannabinoids into the regulated market in a way that protects consumer safety but also respects the huge burdens that licensed cannabis producers have faced and make sure that they’re not being cut out.”

Jim Makoso, CEO of Washington state extraction company Flowe Technology, said safety is his No. 1 concern about delta-8 THC. He would like to see D-8 regulated like D-9, and that includes third-party testing.

“When it comes to consumer safety, at least some regulation should be required around the QC (quality control) standards,” Makoso said. “Pesticide testing, residual solvent testing, potency testing, mycotoxins. That would be a good place to start.”

Omar Sacirbey can be reached at omar.sacirbey@mjbizdaily.com.

Coming tomorrow: Is delta-8 THC a threat to marijuana operators, or an opportunity?

Editor’s note: This week Hemp Industry Daily is highlighting stories and analysis on the delta-8 THC phenomenon. Today, a look at delta-8 THC sales trends in marijuana dispensaries. Read more in the special D-8 February issue of MJBizMagazine.

Plant-touching companies weren’t the only businesses surprised by the sudden and explosive growth of delta-8 THC in 2020. Sales of the novel cannabinoid surprised trade associations and ancillary companies as well.

Seattle-based cannabis analytics firm Headset compiled delta-8 sales numbers for MJBizMagazine, and they show the rapid rise in popularity of products that contain “delta-8” in their names.

Cooper Ashley, senior data analyst at Headset, cautioned that the figures are based on point-of-sale data and are susceptible to errors made by retail workers at checkout.

Still, the numbers paint a picture of the rapid increase in delta-8 popularity as well as the actions taken by regulators in markets where the data was collected: Arizona, California, Colorado, Massachusetts, Michigan, Illinois, Nevada, Oregon and Washington state.

We caught up with Ashley to learn about the D-8 phenomenon’s effect on retail cannabis sales. Answers have been edited for length and clarity.

The explosion of D-8 sales in the third and fourth quarters of 2020 coincided with a dip in the total cannabis market. Do you think the two are related?

You have to remember that growth in the second and third quarters of 2020—after the initial (COVID-19) lockdown and through the summer—was some of the biggest growth we’ve seen in the cannabis market in a very long time, including in more established markets like Washington and Colorado.

Q4 2020 was a return to normal after unexpected growth in spring and summer sales.

That’s also the time when people started to hear about (delta-8 THC) as an option, especially in the world of CBD and gray-market cannabis. That’s when it exploded in name recognition and popularity.

We can see that delta-8 sales exploded in late 2020 and continued to grow through Q2 of 2021.

Have you ever seen a cannabinoid rocket to popularity like this?

The only thing I can think of is CBD itself. It is reminiscent, but I definitely don’t think it’s as widespread or common as CBD was when it was gaining popularity.

Still, that quick rate of growth and adoption was similar to when CBD really took the country by storm a few years back.

The edibles category for delta-8 products is incredibly robust. Is that the case for other lab-made cannabinoids as well?

Tinctures, capsules, edibles and topical categories seem to cater a little bit more to a wellness-type customer.

We see a lot of CBN in the edibles category as well as ingestibles like tinctures and capsules. CBN, especially, is seen as more of a wellness-type cannabinoid. Customers are potentially looking more to treat symptoms/get better sleep (with CBN), and that tends to translate to noninhalable categories.

Edibles may be more approachable for new (cannabis) users or those looking to treat insomnia or treat pain.

What do you think caused the rapid decline in D-8 sales starting in 2021?

We can see that delta-8 sales exploded in late 2020 and continued to grow through Q2 of 2021, but in Q3 (they took) a pretty significant nosedive.

There were a few quarters when (D-8) growth was quick—probably because it was gaining popularity, and also it was quite unregulated.

Since it gained popularity, state governments have been forced to try to deal with it—and some have banned it. Now that it is more regulated, I think that level of growth has been naturally curtailed.

It had a moment of explosive growth, and I think that moment appears to be passing.

How does the price of delta-8 products compare with the other items you track?

It appears that customers who are looking for delta-8 products will have to shell out a bit more cash to get them.

Over the previous 90 days, the average item price of a delta-8 edible product was about 24% higher than a non-delta-8 THC edible.

Coming tomorrow: A look at consumer confusion about delta-8 THC.

All hemp products are dependent on one thing: the ability to grow a reliable and quality crop.

Growers need to pick plants that will deliver the characteristics they need and provide inputs that support the end goals.

But where to begin?

In this report, some of the industry’s most experienced and innovative cultivators share their advice for getting a grow off to a strong start, whether your crop is farmed indoors or outdoors.

This includes tips on:

• Site selection.
• Soil testing.
• Breeding genetics.
• Grow-cycle planning.
• Technology use.
• Contract negotiation.

Click here to download this exclusive report.

No part of the global economy has escaped the COVID-19 pandemic, which has claimed more than 2.5 million lives around the world and sickened countless more.

But few industries were in the kind of infancy the hemp industry was in when the World Health Organization declared the virus a global pandemic on March 11, 2020.

The resulting lockdowns, travel bans, economic collapse and distancing requirements hit just as many farmers were about to plant their first-ever legal hemp crops. Hemp acreage plummeted.

Nascent extractors and hemp processors saw equipment delayed by manufacturing shutdowns. Those that managed to find equipment couldn’t open for business because of mandatory stay-at-home orders.

And while many marijuana retailers were deemed “essential” businesses, depending on the state, hemp-specific retailers were generally closed.

CBD brands that had scrambled to get on shelves of mass-market retailers such as department stores had to immediately pivot to online-only sales.

Market analysts at the Brightfield Group, a Chicago-based data research firm, declared 2020 an “extinction event” for CBD brands, with 50% or more of an estimated 3,000 brands closing.

But the hemp industry didn’t fold up shop because of the challenges. Some companies successfully adapted business plans; others made new ones to adapt.

Hemp Industry Daily caught up (virtually, natch) with some hemp entrepreneurs to reflect on how the industry has reacted to the pandemic and get their predictions for what’s next.

Time to focus

The shutdowns and disease challenged all businesses, of course.

But some hemp entrepreneurs say the unexpected halt to business gave them time to breathe and refine business plans in a go-go young industry.

“It gave me an opportunity to pause,” said Larisa Bolivar, founder and CEO of Colorado-based Bolivar Hemp Co.

She developed a cosmetics line, bought property in Oklahoma to start a new cultivation site and even finished a book she had been working on for years.

“We were all feeling that same rush – you know,  we’ve got to get to market, we’ve got to be No. 1,” she said. “But that’s not always good for launching a business.

“You really have to be strategic. Now, we have room to grow and we have plenty of time. I think COVID kind of reset that clock for everyone.”

One entrepreneur even started a new business, with locations on two continents.

Wendi Young set up an extraction company with locations in Colorado and Belfast, Ireland, while overcoming closed borders and shutdowns across jurisdictions.

Young said she was inspired in part by having to take time off to care for a sick relative.

“There was just a lot of time to really start thinking about, you know, what you want (and) what you want to accomplish,” she said.

Other entrepreneurs found new resilience from their own employees.

“We really saw our team come together in a very big way. Just looking at seeing how people are taking care of each other – I think that was such a big, monumental outcome of COVID,” said Priyanka Sharma, co-CEO of Kazmira, a hemp-derived cannabinoid extraction company based in Colorado.

“It was nice to be able to step back from your own process, see what could be changed with what you were doing over time. … When you’re so in the weeds, you don’t get to step back and see where you can make changes.”

Next normal

So, which changes from the COVID-19 pandemic will stick with the hemp industry?

Andrew Bish, chief operating officer of Bish Enterprises, a harvest-equipment manufacturer in Nebraska, said the pandemic has sparked market attention on non-flower uses for the plant.

“We’re seeing a dramatic upswing in the grain and fiber markets,” Bish said.

“I do think some of that increased demand in grain is coming from people eating at home and looking for more plant-based options, which is really exciting.”

In addition to opening new market demand, the pandemic gave operators an opportunity to close underperforming lines.

“It was a good opportunity to think about really what our primary goals were in the industry,” said Margaret Richardson, chief compliance officer and legal officer at Global Widget, a CBD manufacturer in Orlando, Florida.

“We could think about, in terms of product offerings, really what we wanted to offer.

“It gave us a chance to trim some of the products that weren’t as successful and refocus on formulation. … We came out on the other side, I think, stronger.”

The full discussion on COVID-19 impacts to the hemp industry can be seen below.

And share your insights and predictions live Thursday with Hemp Industry Daily editor Kristen Nichols at 4 p.m. ET/1 p.m. PT on Clubhouse.

(This is the first of a series focused on planning for best cultivation practices for hemp and marijuana growers. Look for additional stories on handling young plants, stocking up on supplies, fertigation and other topics throughout the year.)

Outdoor hemp and marijuana growers are getting ready to get their crops in the ground in the coming weeks, but before they sow seeds or plant clones or seedlings, it’s important to get a good start with proper soil testing, conditioning and preparation.

Crop yield and performance is impacted by field selection and soil preparation, making where and how cultivators grow just as important as what they grow.

And generally, because marijuana and hemp crops are such similar crops, the same soil health practices work for both.

“I think the difference in THC and hemp when it comes to production and soil prep is really the market value,” said Skip Newcomb, farm director at East Fork Cultivars in Takilma, Oregon, a producer that grows both hemp and lower-THC marijuana for CBD production.

“That’s the big difference for us is, we put more into it, knowing that we’re going to get that out of it, but essentially it’s the same exact plant – it grows the same, it looks the same, although I would say THC genetics sometimes do have a little more vigor.”

Soil type

Growers – especially those who produce other crops – may be tempted to pick their worst field to produce hemp or marijuana, because they may consider it risky crop.

But choosing a flat field is key to good yield at harvest, especially if mechanical harvesters will need to navigate that terrain, said Eric Singular, director of development and communications with International Hemp, a hemp genetics company in Denver.

Young plants need enough moisture when they’re first planted to ensure that seeds can germinate and emerge – but once crops are established, too much moisture can be detrimental.

Cannabis doesn’t like “wet feet,” which is to say it doesn’t like to sit in water, so one of the first things growers need to assess is their soil type in the field and the drainage situation.

Ideally, growers will have porous, loamy soil, but hemp and marijuana can grow in any type of soil, as long as it has proper drainage, according to Scott Propheter, a farmer and CBD executive in North Carolina.

“I’ve seen fantastic crops grown on straight red clay. I’ve seen fantastic crops grown on extremely sandy soils. But I think the basic principle that that applies across all of them is, they were well-drained fields,” Propheter said.

Testing, testing

The first step growers need to take to get ready for growing season is order soil tests, which can reveal information such as soil alkalinity, nutritional imbalances and contaminants like heavy metals and pesticides.

Many growers test soils after crops are harvested in the fall, so they can take steps to add any necessary amendments or plant cover crops before the winter, according to Singular.

Late winter to early spring, when fields are staring to dry out, is also a good time to test soil. But be sure to account for enough time to order soil amendments and have them delivered, as this can take some time depending on the location of the grow.

According to Singular, test fields in the spring when the temperature is around 40 degrees Fahrenheit to determine soil temperature.

In southern regions of the U.S., some hemp growers learned the hard way in 2020 that direct sowing seeds in the ground when the soil temperature is 80 to 90 degrees Fahrenheit means that the seeds won’t germinate, “because the seeds just bake in the ground,” Singular says.

Testing for contaminants such as residual pesticides and heavy metals is important for flower, biomass and grain crops – especially for growers pursuing U.S. Department of Agriculture organic certification for hemp or a comparable local certification for marijuana – although some states don’t require it, even though they test crops for contaminants after harvest, said Newcomb.

Noel Garcia, chief operating officer and head crop production consultant with TPS Lab in Edinburg, Texas, said he advises growers to test for heavy metals before they plant anywhere.

“I can’t stress enough how important a soil test is,” Garcia said.

“Hemp is a huge bio-accumulator, meaning it accumulates heavy metals, and a lot of times people would totally disregard that before they even considerate planting or even worse before they even consider buying a piece of property.”

He said there are some areas in Texas and other parts of the country that have high levels of arsenic or cadmium; growers may not realize that until they harvest and try to sell.

“Then the processor will send a sample to the lab and test for heavy metals … and come to find out you’re very high in arsenic and cadmium, and now you lost your entire crop, and you won’t be able to sell it.”

Weed-free fields

Planting in “clean” fields is another key success strategy, though there are few herbicides, if any, that are registered for use on hemp through the U.S. Environmental Protection Agency – and none cleared for use on marijuana crops – so growers don’t have the option to “burn down” weeds with chemicals, like farmers do before planting traditional crops, to ensure a clean field before planting.

Growers can naturally mitigate weeds by planting as early as possible, to let the plants get established before weeds start growing.

“As soon as the soil temperatures get warm, if weeds are growing in the field, that means the crop could be growing in the field,” Singular said.

“If you’re getting in the ground right when those soil temperatures are starting to go north of 40 degrees, you’re going to beat the weeds, and that is by far the most environmentally friendly way to manage your weeds, just getting in early and getting that canopy established,” Singular said.

For grain and fiber hemp varieties, growers can also try planting 5 to 10 more pounds of seed per acre than they need to cut out room for the weeds to grow.

Laura Drotleff can be reached at [email protected]

(Editor’s note: This column is part of a recurring series of commentaries from professionals connected to the hemp industry. Andrew M. Rosner and Kaelan Castetter are vice presidents of the New York State Cannabis Growers and Processors Association.)

Government officials nationwide are talking about banning the sale of hemp flower in the name of public health. But we know from experience that the prohibition could do more harm than good.

Three of the four most populous states – California, Texas and New York – have either passed smokable hemp bans or are considering them. New York provides a good case study to guide industry in addressing this issue.

In New York, the state Department of Health recently proposed regulations that ban the sale of hemp flower, which would result in harm to the many New Yorkers who prefer flower, a lower-cost item than other, more highly processed hemp products.

By permitting flower, states can address safety and access to this fast-growing market segment.

In fact, ensuring quality on unprocessed flower can utilize the same approaches for other manufactured products.

The New York Hemp Regulations require farmers and processors to maintain strict record-keeping and test their products for:

• Cannabinoids.
• Heavy metals.
• Microbial impurities.
• Mycotoxins.
• Residual pesticides.

Products sold in the marketplace must provide testing panels directly to consumers. Cannabinoid hemp products that contain levels that deviate from the allowable limits are considered adulterated and must be destroyed.

New York State can take a similar approach with smokable flower by creating testing panels and limits for combustible products.

Template for marijuana

As it works to legalize adult-use marijuana, New York will almost certainly adopt standards for smokable products. Smokable hemp can provide a template for adult use and begin developing the internal processes that marijuana will require.

The health department attempted to justify the smokable hemp ban by referring to its “efforts to reduce tobacco and smoking consumption.”

Surprisingly, the same proposed regulations allow for vapable products, and Gov. Andrew Cuomo’s recent proposal allows for smokable marijuana products.

New York’s health department rightfully took a harm-reduction strategy with hemp vaping products and should do so with hemp flower.

Public-health approach

Putting aside the current regulatory contradictions, a public health harm-reduction strategy should consider whether banning hemp flower will actually have any effect on people’s behavior. We know from studies of alcohol prohibition that consumption of alcohol remained steady over the period of the laws’ effect.

The banning of flower may actually lead to a rise in smoking tobacco — a known carcinogen with negative systemic health impacts.

Consumer data suggests that banning flower would likely increase tobacco use.

Market analytics firm Nielsen Global Connect found that 1 in 4 tobacco smokers consume hemp flower, while being three times more likely than the general population to purchase the product.

Whether this is due to familiarity of consuming the plant in its unprocessed form or accessible price point (on average one third the price of CBD oil), tobacco smokers are now spending on average $88 a year on hemp flower products, according to Nielsen.

These consumers will most likely shift that spending back to tobacco products, which lead to 480,000 American deaths annually and increased rates of addiction. Nicotine naturally occurs in the nightshade family of plants, such as tobacco, but not in hemp plants.

Importantly, the World Health Organization in 2018 cited studies supporting the non-addictive nature of cannabidiol, a naturally occurring compound found in hemp plants.

The report even goes so far as to mention the “possible therapeutic application” of CBD in addressing tobacco addiction in people.

In New York, state Assemblywoman Donna A. Lupardo recently introduced a bill to amend the public health law in relation to cannabinoid hemp.

As one of the authors of New York’s law giving the health department the role of regulating hemp, Lupardo understands the layers involved in hemp production and the legislative intent behind the original bill.

Her recent actions indicate that the health department went too far in banning smokable flower. The prohibitive stance against hemp flower undermines the purported mission of the state — to ensure that New Yorkers purchase tested, labeled and quality-controlled hemp products.

Lupardo recognizes the prevalence of people smoking hemp flower and wants to protect New York State residents.

Lessons for the industry

Using a multipronged approach, the hemp industry within states can play an instrumental role in opposing bans.

First, start early to advocate directly with state representatives on statutory and regulatory language. Support from elected officials can help in significant ways in applying pressure on administrative bodies that may go rogue.

Second, like in New York, consider independent legislation that legalizes smokable hemp flower. This can help prevent covert efforts to impose flower bans from outside sources.

Third, like in Texas and Indiana, industry representatives can bring a lawsuit against the state for harms caused by the ban.

Ideally, the hemp industry within a state will use a number of the above approaches in tandem with a vigorous social media campaign.

Nothing beats getting the word out and letting other people know the impact of the ban on their family, friends and neighbors.

Ironically, New York’s proposed flower ban came a century after the U.S. Constitution was amended to ban alcohol.

Alcohol prohibition took 13 years to undo. We only hope that what started in 2020 with the release of the flower ban sees a much shorter period of prohibition and we learn from the mistakes of the past in creating hemp regulations that protect all New Yorkers.

Andrew M. Rosner can be reached at [email protected] Kaelan Castetter can be reached at [email protected]

To be considered for publication as a guest columnist, please submit your request to [email protected] with the subject line “Guest Column.”

Hemp farmers are gearing up to plant their fields only two weeks after Texas froze over during Winter Storm Uri – a freak snow and ice storm that caused more than $600 million in damages to the state’s agricultural economy.

According to early data from the Texas A&M Extension Service, other industries such as citrus, livestock and horticultural crops were among the sectors that were hardest hit.

“Freezing temperatures and ice killed or harmed many of their crops and livestock as well as causing financial hardships and operational setbacks, said Jeff Hyde, director of the AgriLife Extension Service at Texas A&M University.

“And the residual costs from the disaster could plague many producers for years to come.”

According to AgriLife, some of the state’s biggest agricultural losses by commodity were:

• Citrus: At least $230 million.
• Livestock: At least $228 million.
• Vegetables: At least $150 million.

Hemp dodged a bullet

It’s likely that hemp farmers with interests in other segments sustained damages.

But when it comes to hemp itself, farmers were mostly spared, as many in the new hemp state hadn’t planted their crops yet. Texas came online and allowed for commercial hemp production for the first time in 2020.

“Generally here in South Texas, we won’t be planting until March or so, but the further north you go, that will be closer to June,” said Noel Garcia, chief operating officer and head crop production consultant with TPS Lab in Edinburg, Texas.

But hemp might be tough enough to withstand snow and maybe some cold, depending on the intended use of the crop, according to Eric Singular, director of communications and business development with International Hemp, a hemp-genetics provider based in Denver.

Singular said a Texas farmer who had planted a test plot containing one of the company’s fiber varieties last fall was monitoring a volunteer crop that has reseeded to see whether it would survive the deep freeze – and so far, it looks as though it has.

“As people have always suspected, it is a robust crop, and especially when you get snow, before you get really low temperatures, you have that insulation effect of the snow that’s protecting it from going from getting too cold. That seems to be really helpful,” Singular said.

He saw the same thing happen in Colorado last September, when an early snowstorm blanketed hemp crops before the temperatures dropped.

“Once it melted off, they seemed to be protected, whereas crops that had to deal with freezing-cold ice are the ones that did not make it – and it is very different, from a fiber and grain crop to a cannabinoid crop,” Singular said.

Another sector that experienced significant losses was the Texas greens industry, which includes 4,000 nursery, greenhouse and related businesses – some of which are home to young-plant producers who grow hemp seedlings and clones for farmers and might produce smokable flower indoors.

Texas currently bans the sale but not the production of smokable hemp, though the ban is on hold pending a lawsuit to be heard later this month.

In 2020, Texas licensed 1,103 hemp farmers with 5,646 outdoor acres and more than 15 million square feet of indoor production.

Texas’ greenhouse industry is still assessing the damages to greenhouses and nurseries, a process that will likely take several weeks.

Most greenhouses, however, are sturdy enough to withstand sufficient snow-loads, and young-plant operations are typically high-tech enough to keep backup generators on hand to maintain a comfortable environment for seedlings and clones, TPS Labs’ Garcia said.

Village Farms International, one of the largest producers of greenhouse tomatoes, bell peppers and cucumbers in North America, converted half its 1.3 million-square-foot Texas greenhouse facilities to hemp.

The company said last week that operations have continued uninterrupted amid the recent power outages and water-supply shortages that much of Texas experienced because of the winter storm.

Ready, set, plant!

Planting outdoors is safe now, but Texas farmers will need to move rapidly to get their seeds or young plants in the ground before May 20.

After that, the soil temperature gets too warm and seeds won’t germinate, said Troy Owens, a farmer in Bay City, Texas, who grows organic corn and organic hemp.

Last year, he planted 500 acres of hemp for grain and applied chicken manure fertilizer, only to have rains wash out the crop.

By the time he replanted, the ground temperature was too hot and he lost much of his crop.

“I feel comfortable planting after the last freeze, all the way up to May 20,” Owens said.

Owens said he waited to plant his corn and plans to sow hempseed this week, though the fields are still a bit wet. This season, Owens has scaled back his hemp production to 150 acres.

Laura Drotleff can be reached at [email protected]